UNITED INDIA INSURANCE CO. LTD Vs. NIRMALA RANI

JUDGEMENT

(1.) THIS appeal has been filed by United India Insurance Co. Ltd. (hereinafter referred to as the Insurance Company) against the award dated 19th October, 1989, passed by the Motor Accident Claims Tribunal, Ludhiana.

(2.) BRIEFLY stated, the facts of the case are that deceased Sudarshan Kumar Prabhakar, who was working as a Civilian Assistant Fire Master was coming back to his home after doing his duty on 23rd December, 1987 and was hit by a bus bearing Registration No. PAB 7190 belonging to Nankana Sahib Transport Co. Pvt. Limited, Ludhiana (respondent No. 6) which was being driven by Driver Mohan Singh (respondent No. 7). As a result of this accident, the deceased died on the spot. Thereafter, an application under Section 110-A of the Motor Vehicles Act (in short, the Act) was filed on behalf of the legal heirs of the deceased in the court of Motor Accident Claims Tribunal, Ludhiana, in the year 1988. The Motor Accident Claims Tribunal vide his award, dated 29th October, 1989, held that Nankana Sahib Transport Co. Pvt. Limited was the owner of the bus which hit the deceased and Mohan Singh, respondent No. 7 was the driver of the bus. It further held that the accident was caused due to the rash and negligent driving of the said bus being driven by respondent Mohan Singh, resulting in the death of deceased Sudershan Kumar Prabhakar. The learned Tribunal also gave the finding that the said bus was insured with the Insurance Company and the total liability was got enhanced by the owner of the bus by making an extra payment through cheque dated 22.12.1987, which was received on the same date by the Insurance Company and as such the total third-party liability was enhanced to Rs. 3 lacs by the Insurance Company and as such the total third-party liability was enhanced to Rs. 3 lacs by the Insurance Company. Keeping in view these facts, the learned Tribunal awarded compensation to the tune of Rs. 2,16,000/- to the claimants with costs. Aggrieved by the aforesaid award, the present appeal has been filed by the Insurance Company.

(3.) MR . Munishwar Puri, learned counsel appearing on behalf of the Insurance Company drew our attention to the statement of AW 7, and submitted that the said witness had clearly proved that cheque dated 22.12.1987 with regard to the enhanced liability, was received by the Insurance Company on 24th December, 1987 and the endorsement was effective from 24th December, 1987. He, therefore, contended that the enhanced liability on the policy could become effective only from the date when the acceptance of the cheque was communicated by the authorised officer of the Insurance Company on 24th December, 1987. He submitted that in the present case, the enhanced liability could, therefore, be effective earliest with effect from 24th December, 1987. He submitted that admittedly the deceased as a result of the accident died on 23rd December, 1987 and as such the claimants were not entitled to any amount on the basis of the enhanced liability. He, therefore, contended that the Insurance Company was not liable to pay any amount beyond Rs. 50,000/- which has already been paid to the claimants. In support of his contention, the learned counsel placed reliance on a judgment of the Supreme Court in Life Insurance Corporation of India v. Raja Vasireddy Komalavalli Kamba and others, AIR 1984 SC 1014.